The home of Kew East’s Beaurepaires – located at one of Melbourne’s busiest junctions – has sold for $4.08 million.
CBRE Melbourne Strip Retail Investments’ agents Josh Rutman, Rorey James and Benson Zhou in conjunction with Beller Commercial, handled the auction for 1417 Burke Road, which attracted an unprecedented level of enquiry during the sales campaign.
Four local investors and four mainland Chinese groups competed for the property, with the eventual purchaser a mainland Chinese investor who had missed out on a number of previous auctions through CBRE.
The sale price reflected a land rate in excess of $5,000 per square metre (Commercial 2 Zoning) and a tight passing yield of under 4%.
“This yield is considerably strong when compared to previous surrounding transactions and what the property was last sold for back in 2010,” Mr James said.
“We’re continuing to see an unprecedented level of enquiry for current campaigns as a result of a record low supply of retail properties and strong local and offshore buyer demand.”
Located on a 780sqm land parcel, the Burke Road property has been leased to the tyre giant for over 30 years, being previously occupied by a fuel station.
Mr Zhou noted that the mainland Chinese buyer was most attracted to the property given its location in the eastern corridor and longevity of the retailer.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.